| Canada-Nunavut Infrastructure Agreement |
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CANADA - NUNAVUT INFRASTRUCTURE
PROGRAM AGREEMENT Made this 6th day of December, 2001, BETWEEN THE GOVERNMENT OF
CANADA (herein referred to as
"Canada") represented by the Minister responsible for Infrastructure
and the Minister of Indian Affairs and Northern Development AND THE GOVERNMENT OF
THE TERRITORY OF NUNAVUT (herein referred to as "Nunavut")
represented by the Minister of Community Government and Transportation and the
Minister of Finance. WHEREAS the Government of Canada outlined in the 1999 Speech from the Throne a new vision of 21st Century infrastructure to improve the quality of life for Canadians and make a long-term contribution towards a dynamic economy; AND WHEREAS Canada and Nunavut agree that an Infrastructure program for the construction, renewal, expansion, or material enhancement of infrastructure throughout Canada will contribute to improving the quality of life for all Canadians and building the foundation for sustained long-term economic growth in the 21st century; AND WHEREAS Canada and Nunavut agree that local governments know the infrastructure needs that contribute most to the quality of life of communities in Canada; AND WHEREAS Canada and Nunavut recognize the unique relationship between Nunavut and local communities, given that 25 of 26 communities are non-tax based and generally do not have the ability to contribute financially to projects; AND WHEREAS Canada and Nunavut agree that working in cooperation with local government and the private sector, to maximize the use of their resources and expertise, is to the benefit of Canadians; AND WHEREAS Canada and Nunavut agree that communication with the public will best serve Canadians’ right to transparency, public accountability, and full information about the benefits of the Infrastructure program and the contribution of each Party; AND WHEREAS Canada is committed to co-operating with Nunavut to provide services in the official languages of Canada and Nunavut and to support the development of English and French linguistic minority communities; AND WHEREAS the Governor in Council by Order in Council P.C. 2000-1526 has authorized the Minister responsible for Infrastructure together with the Minister of Indian Affairs and Northern Development to execute this Agreement on behalf of Canada; AND WHEREAS the Nunavut Executive Council has authorized the Minister of Community Government and Transportation and the Minister of Finance to enter into this Agreement on behalf of Nunavut; THEREFORE, in accordance with the principles set out above, Canada and Nunavut hereby agree as follows: 1 INTERPRETATION
Definitions
1.1 In this Agreement, unless the context
requires otherwise, (a) “Applicant” means an applicant for a
contribution to a Project pursuant to the Infrastructure program; (b) "Federal Implementing
Minister" means the Minister of Indian Affairs and Northern Development
and includes anyone authorized to act on the Minister's behalf; (c) "Federal Ministers" means
the Minister responsible for Infrastructure and the Federal Implementing Minister; (d) “Fiscal year” means the period
beginning April 1 of a year and ending March 31 of the following year; (e) "Infrastructure" means
publicly or privately owned fixed capital assets in Canada for public use or
benefit; (f) “Local government” means
the government of a city, town village or hamlet as those terms are defined in
the Cities Towns and Villages Act (Nunavut) and the Hamlets Act (Nunavut); (g) "Ministers" means the
Federal Ministers and the Territorial Ministers; (h) "Minister responsible for
Infrastructure" means the President of the Treasury Board of Canada as
Minister responsible for Infrastructure and includes anyone authorized to act
on the Minister's behalf; (i) “Project” means an Infrastructure
project that is proposed or approved under this Agreement; (j) "Territorial Implementing
Minister" means the Minister of Community Government and Transportation or
any other Territorial Minister subsequently charged with this responsibility,
and includes anyone authorized to act on his/her behalf; (k) "Territorial Minister" means
the Minister of Finance or any Territorial Minister subsequently charged with
this responsibility, and includes anyone authorized to act on his/her behalf; (l) "Territorial Ministers"
means the Territorial Minister and the Territorial Implementing Minister; (m) "Third Party" means any
person, other than a Party or Applicant that is involved in a Project under the
Infrastructure program. 1.2 Words in the singular include the
plural, and words in the plural include the singular, as the context requires. 1.3 All Schedules to this Agreement form
part of the Agreement. 1.4 Canada and Nunavut are the Parties to
this agreement. 1.5 The purpose of this Agreement is to
enable the Parties to undertake the Infrastructure program, by defining their
roles and responsibilities, the processes and rules for managing and
administering this Agreement, and the obligations and undertakings on the part
of each Party. 2 PURPOSE, OBJECTIVES AND SCOPE
2.1 The purpose of the Infrastructure program
is to improve urban and rural municipal infrastructure in Canada and
Nunavut. Infrastructure program
objectives include improving Canadians’ quality of life through investments
that: ·
Enhance
the quality of Canada's environment ·
Support
long-term economic growth ·
Improve
community infrastructure ·
Build
21st century infrastructure through best technologies, new
approaches and best practices. 2.2 The scope of investments (as set out in
Schedule A) supporting the objectives of the Infrastructure program include: (a) as a first priority, green municipal
infrastructure; and (b) as secondary priorities, local
transportation infrastructure, cultural and recreational infrastructure,
infrastructure supporting tourism, rural and remote telecommunications,
high-speed Internet access for local public institutions, and affordable
housing. 3 ROLES AND RESPONSIBILITIES OF THE MANAGEMENT COMMITTEE
Establishment and
Membership
3.1 A Management Committee shall be
established to administer and manage this Agreement. The Management Committee shall consist of two Federal Members (to
be appointed by the Minister responsible for Infrastructure), two Territorial
Members (to be appointed by the Territorial Implementing Minister). The
Management Committee shall continue to exist and operate for as long as
necessary to meet the requirements of the Agreement. 3.2 The Management Committee shall be headed
by two Co-chairs, a Federal Co‑chair (appointed by the Minister
responsible for Infrastructure from the two Federal Members), and a Territorial
Co-chair (appointed by the Territorial Implementing Minister from the two
Territorial Members). In the case of a
Co‑chair’s absence or inability to act, the Federal Member not appointed
as Co‑chair shall act as the substitute for the Federal Co-chair and the
Territorial Member not appointed as
Co-chair shall act as the substitute for the Territorial Co-chair. Role of Local Government
3.3 The Minister responsible for
Infrastructure and the Territorial Implementing Minister shall establish a local
government consultation process that will involve the Nunavut Association of
Municipalities. Local Governments will be consulted on the project selection
and nomination process and any other matter related to the implementation of
this Agreement. Internal Rules of the
Management Committee
3.4 The Management Committee shall meet
every two months at such places and on such dates as may be agreed by the
Co-chairs or their substitutes. The Co‑chairs
may alter the timetable to meet the demands on the Management Committee. A
quorum for all meetings of the Management Committee shall be the two Co-chairs. 3.5 The Management Committee shall establish
sub-committees as required from time to time to carry out this Agreement. 3.6 The Management Committee shall establish
all rules and procedures with respect to its own meetings and meetings of
sub-committees of the Management Committee, including rules for the conduct of
meetings and decision-making where the members are not physically present. 3.7 The Management Committee shall develop,
where appropriate, and in a timely manner, administrative guidelines for the
application, assessment, approval, reporting, implementation and evaluation
processes of Projects. 3.8 The Management Committee shall establish
a Joint Secretariat to support the administration of this Agreement, including
the sharing of information about applications and proposed Projects. Project Review,
Selection and Approval
3.9 The
Management Committee shall: (a) review all Projects to ensure that
they (i) are consistent with the objectives and targets of the Infrastructure
program, (ii) meet the eligibility and screening criteria, and are ranked
appropriately, according to the criteria set out in Schedule A, (iii) are
structured so that any ongoing operating costs are borne by the Applicant or a
Third Party and (iv) are supported by satisfactory financial arrangements. (b) ensure that environmental assessments
of Projects have been completed in accordance with the requirements of the
applicable environmental legislation of Canada and Nunavut; (c) ensure that Projects are consistent
with planning practices and guidelines of Nunavut; (e) ensure that any Project approval
decision is made before April 1, 2005, and that no Project is approved if its
expected completion date extends beyond March 31, 2006; (f) consider amendments to Projects (other
than changes in scope approved under paragraph (d)), provided they are
submitted to the Management Committee no later than March 31, 2007; (g) ensure that all contracts awarded for
the implementation of a Project incorporate the relevant provisions of this
Agreement. Decisions
3.10 The decisions, approvals and
recommendations of the Management Committee will be made or given upon
agreement by the Co-chairs. The signatures of both Co-chairs shall be
sufficient verification, for the purposes of this Agreement, of any such
decision, recommendation or approval by the Management Committee. Other Related
Responsibilities
3.11 The Management Committee shall be
responsible for the administration and management of this Agreement, and
without limiting the generality of the foregoing, shall: (a) ensure the implementation of the
Communications Protocol, the Audit Framework, and other provisions of this
Agreement; (b) carry out any other duties, powers and
functions specified elsewhere in this Agreement or as may be assigned to the
Management Committee by the Ministers to accomplish the Purpose of this
Agreement; (c) provide annual audit plans and
reports, and such other reports as necessary to the Ministers. 4 PROJECT IMPLEMENTATION
4.1 It shall be the responsibility of
Nunavut to ensure that all Projects approved under the terms of this Agreement
are implemented. 4.2 The Parties shall comply with and shall
ensure that the Applicant and any Third Party complies with all applicable
environmental legislation of Canada and Nunavut in the implementation of any
Project under this Agreement. 5 CONTRACT PROCEDURES
5.1 All contracts to be entered into by
Nunavut or by any Applicant, with a Third Party for the implementation of a
Project shall be awarded and administered in accordance with the
administrative, management and contract procedures within Nunavut. 5.2 All contracts entered into pursuant to
Section 5.1 shall be consistent with and shall incorporate the relevant
provisions of this Agreement and (without limiting the foregoing) Nunavut shall
ensure that such contracts include the following provisions: (a) proper and accurate accounts and
records shall be maintained with respect to the Project; (b) the Parties and any member of the
Management Committee, or their designates, shall be permitted, at all
reasonable times, to inspect the terms of the contract and any records and
accounts respecting the Project; (c) all applicable labour, environmental
and human rights legislation shall be complied with; (d) the Third Party shall be solely
responsible for and shall save harmless and indemnify Canada, Nunavut and their
Ministers, officers, employees and agents from and against all claims,
liabilities, and demands of any kind with respect to any injury to persons
(including, without limitation, death), damage to or loss or destruction of
property, economic loss or infringement of rights caused by or arising directly
or indirectly from (i) the Project; (ii) the performance of the contract
or the breach of any term or condition of the contract by the Third Party or
its officers, employees or agents; (iii) the on-going operation, maintenance
and repair of the Project; or (iv) any omission or any wilful or negligent act
of the Third Party or its officers, employees or agents. (e) Applicants and Third Parties who are
dissatisfied with decisions of the Management Committee or Nunavut affecting
their Project may, in addition to any other remedy, lodge a complaint with the
Management Committee. 5.3 Upon the completion of any Project,
Nunavut, the Applicant or any Third Party to whom is assigned the on-going
responsibility for such Project shall take over full responsibility for that
Project's operation, maintenance and repair, except where Canada and Nunavut
have specifically agreed otherwise. 6 FINANCIAL PROVISIONS
6.1 Subject to the terms and conditions
of this Agreement and subject to the express condition that there be an
appropriation by the Parliament of Canada for the funds necessary for the
Fiscal Year in which they are required, the total contribution by Canada under
this Agreement shall not exceed $ 2,131,000. (i) shall
not exceed one-third (1/3) of the total Eligible Costs approved for a Project
involving a tax-based Local government, and (ii) shall
not exceed one-half (1/2) of the total Eligible Costs approved for a Project
involving a non-tax-based Local government. 6.3 Canada
may (i) fund
more than one-third (1/3) of the Eligible costs of a specific Project involving
a tax-based Local government, provided that, at the end of each fiscal year,
Canada's share of Eligible costs for all such Projects does not exceed
one-third (1/3); and (ii) fund
more than one-half (1/2) of the Eligible costs of a specific Project involving
a non-tax-based Local government, provided that, at the end of each fiscal
year, Canada's share of Eligible costs for all such Projects does not exceed
one-half (1/2). 6.4 Nunavut, the Applicant and any Third
Party may not receive funding from any other federal sources for any Project
approved pursuant to this Agreement. 6.5 Each Party, in accordance with the terms
and conditions of this Agreement (and the Applicant, where applicable and at
the demand of Nunavut), shall be responsible for contributing their share of
the Eligible Costs of a Project approved and implemented under this Agreement. 7 PAYMENT PROCEDURES
7.1 Payments by Canada shall be promptly
made to Nunavut on the basis of progress claims setting out the costs actually
incurred and paid for the Project, submitted in a form and verified in a manner
satisfactory to Canada. 7.2 In order to assist with the interim
financing of any Project, Canada may make interim payments to Nunavut, in
accordance with the Treasury Board of Canada’s Policy on Transfer Payments, towards Canada’s share of claims
submitted, where those claims are based on estimates, certified by a senior
officer of Nunavut, of costs actually incurred by Nunavut. 7.3 Nunavut shall account for each
interim payment by submitting to Canada, within ninety (90) days after such
payment by Canada, a detailed statement of the eligible costs actually incurred
and paid, verified in a manner satisfactory to Canada. Any discrepancy between the amounts paid by
Canada by way of interim payments and the amounts actually paid by Nunavut
shall be promptly adjusted between the Parties. 7.4 Notwithstanding anything in
subsection 7.2, Nunavut shall not be entitled to any interim payment in a
subsequent fiscal year until all such payments received by Nunavut in a
previous fiscal year have been repaid or accounted for in a manner satisfactory
to Canada. 7.5 Canada shall reimburse Nunavut, from
the funds allocated in subsection 6.1, up to $50,000 for the salaries and other
employment benefits of any employee of Nunavut engaged solely and specifically
for the purpose of implementation of this Agreement by the Joint Secretariat,
as well as other operating costs actually incurred, as determined and approved
by the Management Committee. 7.6 No claim shall be paid by the Parties
unless it is received on or before March 31 of the year following the Fiscal
Year in which the Eligible Cost is incurred and in all circumstances, no later
than March 31, 2007. 7.7 The Management Committee shall not
consider cost overruns on Projects approved under this Agreement, other than in
exceptional circumstances where (a) the entity implementing the Project
informs the Management Committee as soon as it becomes aware that a cost
overrun is probable; (b) the Management Committee approves the
inclusion of the cost overrun as justifiable; and (c) funds are available to cover the cost
overrun. 8 AUDIT AND INSPECTION
8.1 Canada and Nunavut shall ensure that
proper and accurate accounts and records are maintained with respect to each
Project undertaken pursuant to this Agreement and shall, upon reasonable
notice, make such accounts and records available for inspection. 8.2 Accounts and records shall be
maintained for a period of at least three years after the final settlement of
accounts with respect to a Project. 8.3 Each of the Parties may inspect the
amounts of all claims in respect of any Project implemented under this
Agreement and the accounts and records related thereto. Any discrepancy between
the amounts paid by any of the Parties and the amount payable under this
Agreement shall be promptly adjusted between the Parties. 8.4 Each of the Parties will provide to any
member of the Management Committee on request all information in its custody
and under its control that would indicate whether a Project has actually been
undertaken or completed, the benefits achieved, and the costs incurred with
respect thereto. 8.5 The Management Committee shall ensure
that the expenditures incurred under the Agreement are audited annually in
accordance with the Audit Framework attached hereto as Schedule “B”. 9 PROGRAM EVALUATION
9.1 Canada and Nunavut agree to
co-operate with respect to the evaluation of the Infrastructure program. Costs associated with the national
evaluation shall be borne by Canada. 9.2 Canada shall undertake an interim
national evaluation of the Infrastructure program within the twelve months
following March 31, 2003 and a final national evaluation no later than twelve
months after March 31, 2006. 9.3 Each Party will provide the other with
all relevant information as may reasonably be required to undertake such an
evaluation. 9.4 The Management Committee may choose to
undertake an evaluation of the Projects approved within Nunavut pursuant to
this Agreement on a shared cost basis and shall approve the terms of reference
for such an evaluation before it is undertaken. 10 COMMUNICATIONS
10.1 Canada and Nunavut hereby agree to
undertake the development and delivery of a Communication Plan for the term of
this Agreement which will enhance opportunities for appropriate, continuous and
consistent recognition for co‑operative activities under this
Agreement. The mechanisms thereof are
specified in the Communications Protocol, Schedule “C” to this Agreement. 11 INFORMATION MANAGEMENT SYSTEM
11.1 Canada will develop a national Shared
Information Management System for Infrastructure (SIMSI) to support the
delivery of the Infrastructure program by providing on-line Project
registration, approval, monitoring, and reporting capabilities. Costs associated with the design,
development, implementation and maintenance of the system will be borne by
Canada. 11.2 Canada and Nunavut may agree to
promote and use the system to capture, store, manage, and disseminate Project
information for the term of this Agreement.
The responsibilities of the parties will be elaborated in a memorandum
of understanding. 12 GENERAL
12.2 This Agreement may be amended from time to
time on written agreement of the Federal Ministers and the Territorial
Ministers. It is expressly agreed and
understood, however, that any amendment to Section 2, Section 6 or
subsection 12.1 (termination) will require approval by the Governor in
Council. 12.3 No member of the House of Commons or of
the Senate of Canada or of the Legislative Assembly of Nunavut shall be
admitted to any share or part of any contract, agreement or commission made
pursuant to this Agreement or to any benefit arising therefrom. 12.4 Nothing in this Agreement is to be
construed as authorizing one Party to contract for or to incur any obligation
on behalf of the other or to act as agent for the other. Nothing in this Agreement is to be construed
as authorizing any Applicant or any Third Party to contract for or to incur any
obligation on behalf of either Party or to act as agent for either Party and
Nunavut shall take reasonable steps to ensure any agreement between Nunavut and
an Applicant or a Third Party contains a provision to that effect. 12.5 All property including patents, copyrights
and other intellectual property and any revenue acquired as a result of the
work performed under any Projects shall be disposed of, licensed or otherwise
dealt with as the Management Committee may from time to time determine. 12.6 (a) Notwithstanding any other provision of
this Agreement, all obligations of Canada incurred by virtue of this Agreement
shall be subject to the Financial Administration Act (Canada). (b) Notwithstanding any other provision of
this Agreement, all obligations of Nunavut incurred by virtue of this Agreement
shall be subject to the Financial Administration Act (Nunavut). 13 DISPUTE AVOIDANCE
13.1 The Parties will keep each other informed,
by way of exchange of information within the Management Committee, of
potentially contentious issues, and will attempt to resolve such issues at the
Management Committee level. 13.5 Except as provided below, where there
is a dispute, the Infrastructure program will continue to operate in all other
respects. 13.7 Questions of law, or the application
of law to facts, will be resolved by application to the Nunavut Court of
Justice. This Agreement has been executed on behalf of Canada by the Minister responsible for Infrastructure and the Minister of Indian Affairs and Northern Development and on behalf of Nunavut by the Premier, the Minister of Community Government and Transportation and the Minister of Finance.
SCHEDULE “A” CANADA - NUNAVUT INFRASTRUCTURE
PROGRAM AGREEMENT Project Review and
Selection Framework A.1 ELIGIBILITY
AND SCREENING CRITERIA
Eligible Applicants
A.1.1 Eligible Applicants are: (a) Any
Local Government proposing a Project; Non-Eligible Applicants
A.1.2 Departments, Ministries and Agencies
of Canada or Nunavut, departmental corporations or Crown corporations owned or
controlled by Canada or Nunavut, are not Eligible Applicants. Eligible Projects
A.1.3 Eligible Projects must be a
construction, renewal, expansion, or material enhancement of Infrastructure. For purposes of this Agreement, transit
vehicles powered by alternative fuels shall be deemed to be fixed capital
assets. A.1.4 The types of Infrastructure Projects that
meet/support the objectives of the Agreement include but are not limited to the
following: (a) First Priority Green Municipal
Infrastructure, such as water and wastewater systems, water management, solid
waste management and recycling, capital expenditures to retrofit or improve the
energy efficiency of buildings and facilities owned by Local Governments. (b) Secondary Priorities, other local
infrastructure, including ·
Local
transportation infrastructure, such as roads, bridges, public wharves and docks. ·
Cultural and
recreational facilities. ·
Infrastructure
supporting tourism, such as basic municipal infrastructure to support or
provide access to tourist facilities. ·
Rural and remote
telecommunications such as fibre optic or copper cable, radio or satellite
links in rural areas. ·
High-speed access
for local public institutions such as schools, museums, and libraries,
community centres or municipal buildings. ·
Affordable
housing: construction of rental housing that does not create a long-term
financial obligation on the part of territorial or local governments or their
agencies, including related infrastructure such as site preparation and utility
extensions, that would rent at, or below, average market rental rates in a
particular community and would therefore be affordable to moderate income
households, as defined by the Canada Mortgage and Housing Corporation. Non-eligible Projects
A.1.5 Projects dealing mainly with assets
owned by Canada or Nunavut are not eligible projects, except where those assets
are of a type normally owned or operated by municipalities for local use and
benefit as determined by the Management Committee. Eligible Costs
A.1.6 Eligible Costs mean all direct costs
properly and reasonably incurred and paid solely and specifically by an
Applicant or Third Party, which are invoiced against a contract for goods
and/or services necessary for the due implementation of a Project, including: (a) the capital costs (as defined and
determined by the Generally Accepted Accounting Principles which are in effect
in Canada, including those published in the handbook of the Canadian Institute
of Chartered Accountants) of acquiring, constructing or renovating a fixed
capital asset; (b) the salaries, fees, remuneration paid
to professionals, technical personnel, consultants and contractors specifically
engaged to undertake the design, engineering, manufacturing or construction of
an Eligible Project and related facilities and structures, where applicable; (c) any other costs which are incurred and
paid in the implementation of a Project that are approved in advance by the
Management Committee; and (d) communications costs (as specified in
Schedule C) that are approved in advance by the Management Committee. Ineligible Costs
A.1.7 Costs
related to the following are not eligible: (a) services or works normally provided by
an Applicant or any other agency of an Applicant, except in cases where the
provision of such works or services by anyone other than the Applicant would be
unduly costly or not feasible; (b) the salaries and other employment
benefits of any employees, overhead costs as well as other direct or indirect
operating or administrative costs of an Applicant and more specifically these
costs as related to planning, engineering, architecture, supervision,
management and other services provided by an Applicant’s permanent staff; (c) feasibility and planning studies; (d) the Goods and Services Tax for which
the Applicant or a Third Party is eligible for a tax rebate and all other costs
eligible for rebates; (e) the purchase of lands or any interest
therein; (f) leasing land, buildings, equipment and
other facilities; (g) contributions or commitments in kind;
and (h) the repair or general/periodic
maintenance of a roadway and related structures or an existing facility and/or
equipment therein. Project Statement and
Supporting Documentation
A.1.8 An Applicant must submit a Project statement
demonstrating the following: (a) how the proposed Project is situated
within, and advances, the sponsoring Local Government's development plan(s); (b) how the proposed Project contributes
to environmental, economic, community and innovation objectives specified in
this Agreement; (c) how Canada’s financial support is
required to enable the implementation, enhance the scope, or accelerate the
timing of the proposed Project; (d) how the Applicant intends to comply
with the applicable environmental assessment requirements of the Agreement; (e) that the Project uses the best
available, economically feasible, technology; and (f) such other information that the
Management Committee may request. A.1.9 An Applicant must provide evidence that a
Project proposal has been duly authorized or endorsed by a resolution of its
Council or Board of Directors, as the case requires, and evidence of a
commitment by the Applicant to pay its share of the eligible costs and ongoing operating
costs of the Project. A.2 Ranking CRITERIA
A.2.1 The Management Committee will assign
priority to Projects according to the following criteria. Preference will be given to Projects meeting
two or more of the criteria: (a) Enhancement of the quality of the
environment by ·
Improving
water quality ·
Improving
air quality ·
Improving
water and waste water management ·
Improving
solid waste management ·
More
efficient energy use (b) Support of long-term economic growth
by ·
Increasing
economic opportunity in communities ·
More
safe and efficient movement of people and goods ·
Increasing
access to the new economy through improved telecommunications for local public
institutions or remote and rural areas ·
Increasing
tourism opportunities (c) Improvement of community infrastructure by ·
Increasing
community safety ·
Increasing
supply of affordable housing ·
Supporting
Canadian heritage and culture ·
Increasing
access to local recreational facilities ·
Supporting
the development of English and French linguistic minority communities (d) Building 21st century
infrastructure through encouraging best technologies, new approaches and best
practises by ·
Encouraging
innovation ·
Increasing
partnerships ·
Encouraging
the use of new approaches and best practices ·
Encouraging
more efficient use of existing infrastructure A.3 EXPENDITURE/INVESTMENT TARGETS
A.3.1 A minimum of 80% of the total approved costs
for all Projects will be devoted to Green Municipal Infrastructure
Projects. A.3.2 Canada and Nunavut will maintain a
capability to fund Projects nominated by either of them, pursuant to paragraph
A.1.1(b) above. A.4 NOTIONAL SPENDING PROFILE
A.4.1 The total contribution by Canada under this
agreement will be notionally allocated as follows:
A.4.2 Should any of the above annual
allocations not be expended in a fiscal year, subject to subsection 6.1, Canada
will provide the lapsed amounts in a subsequent Fiscal Year. SCHEDULE “B” CANADA -
NUNAVUT INFRASTRUCTURE
PROGRAM AGREEMENT AUDIT
FRAMEWORK B.1 PURPOSE
B.1.1 The purpose of the audit framework is to
provide independent and objective assurances that: ·
The
management framework is appropriate, provides due consideration to risk
assessment and management, and ensures compliance with the terms and conditions
of this Agreement; ·
The
funds are spent for the purposes intended and with due regard to economy,
efficiency and effectiveness; ·
Applicants
comply with their environmental obligations or conditions attached to the
approval of their Projects; and ·
Appropriate
systems, procedures and audit trails are in place to collect relevant, reliable
information on the results of the Infrastructure program for both audit and
evaluation purposes. B.2 AUDIT OBJECTIVES
B.2.1 The key objectives of audits to be conducted
pursuant to the Agreement are to: ·
Assess
the overall management and administration of the Infrastructure program; ·
Determine
whether funds were expended for the purposes intended and with due regard to
economy, efficiency and effectiveness, by examining project selection and
payment approval processes, including the nature and extent of supporting
documentation, accuracy of claim information and evidence of proper
authorizations and such other due diligence reviews as appropriate; ·
Evaluate
Project compliance with appropriate legislation, and more specifically
environmental legislation, including screening, assessment and follow-up
processes; (note: While the focus is primarily on appropriateness of the
environmental management system and compliance, there may be instances where an
independent environmental audit is required). ·
Ensure
that Project and Infrastructure program information and monitoring processes
and systems are sufficient for the identification, capture, validation and the
monitoring of achievement of intended benefits; and ·
Ensure
that prompt and timely corrective action is taken on audit findings. B.3 ROLES AND RESPONSIBILITIES
B.3.1 Governance of the audit function will
be the responsibility of the Management Committee. The Management Committee will ensure resources are set aside for
audits; establish annual audit plans; oversee the conduct of audits and the
reporting of audit results; and ensure that prompt and timely corrective action
is taken in response to audit findings, including the recovery of funds if
applicable. B.3.2 The Management Committee will submit to
Ministers a copy of their annual audit plans, the annual audit reports and a
report on the corrective action taken if applicable. B.4 AUDIT PLAN
B.4.1 The Management Committee will ensure that an
annual audit plan is developed that conforms to the program guidelines and
includes the following elements: (a) Interjurisdictional Collaboration The Management
Committee, in developing the audit plan, will adopt a collaborative approach to
planning and conducting audits in order to avoid unnecessary duplication or
overlap in audit activities and to build on existing audits where possible. (b) Scope of Audit Activities The audit plan
will describe the scope of audit activity to be undertaken each year. Audit plans are to be developed based on a
risk management approach and should specify: ·
the
audit objectives to be addressed in audits to be carried out that year; ·
the
numbers of Projects of various sizes and scope to be audited; ·
the
nature of the risks or issues that are to be the focus of audits; and ·
the
reporting of audit results. (c) Timing and Reporting of Audits The annual
audit plan should indicate the proposed time frame for starting and completing
audits and for the reporting of audit findings. Pursuant to the Treasury Board of Canada Review Policy, the
Management Committee will be responsible for ensuring that all audit and review
results are accessible to the public in a manner consistent with the
above-mentioned policy. (d) Methodology The annual
audit plan should outline the methodologies to be used for each audit,
including the use of audits being carried out as part of the audit plans of
Canada, Nunavut or the Applicant. (e) Level of Resources The annual
audit plan should specify the level of resources – financial and human – to be
allocated to the conduct and management of audits and the share of these
resources to be provided by the Parties. (f) Audit Standards All audits to
be carried out under this Agreement are to be carried out according to accepted
national or federal government audit standards for the specific type of audit
to be carried out. The applicable standards include the Generally Accepted
Auditing Standards and Standards for Assurance Engagements issued by the
Canadian Institute of Chartered Accountants. B.5 PROJECT INFORMATION
B.5.1 The Management Committee shall ensure that
all Project eligibility, selection, implementation and management, and
performance monitoring data and information required for auditing a Project is
collected and made accessible to auditors. SCHEDULE “C” CANADA -
NUNAVUT INFRASTRUCTURE
PROGRAM AGREEMENT COMMUNICATIONS
PROTOCOL C.1 GENERAL
C.1.1 Canada and Nunavut agree to undertake
joint communications activities and products that will enhance opportunities
for open, transparent, effective and pro‑active communications with
Canadians through appropriate, continuous and consistent public information
activities that recognise the contribution of the Parties and the Applicant
under this Agreement. C.1.2 The mechanisms for such communications and
public information activities and products shall be determined by the
Management Committee which may establish a Communications Sub-committee to
provide it with advice and support on such matters. The sub-committee shall be comprised of at
least one federal representative and one territorial representative. C.1.3 All public information material in relation
to this Agreement shall be in the official languages of Canada and Nunavut and
indicate that the Project is being implemented pursuant to this Agreement. All such material shall fairly reflect the
contribution of the Parties and the Applicant. This includes ensuring equal
recognition and prominence where words, logos, symbols and other types of
identification are incorporated into materials. C.2 COMMUNICATING
WITH APPLICANTS
C.2.1 All written communications with Applicants
including Project approval notifications and other related information shall be
prepared on letterhead specifically identifying the Canada – Nunavut
Infrastructure program. Project approval notifications shall be signed by both
Co-chairs. C.2.2 All public information material related to
calls for tendering shall clearly and prominently indicate that the Project is
funded pursuant to this Agreement. C.3 Communicating
with the Public
Public Information Products
C.3.1 The Management Committee may develop
information kits, brochures, public reports, and web site material to inform
potential Applicants and the public about the Infrastructure program. News Release
C.3.2 The Parties shall issue a joint news release
when this Agreement is signed. The
Parties shall issue joint news releases after the approval of individual
Projects. In all such news releases,
the Parties and the Applicant shall receive equal prominence. The Parties shall
mutually agree on the use of quotes from the designated representatives of
Canada, Nunavut or the Applicant in the news releases. News Conferences
C.3.3 Canada and Nunavut agree to hold news
conferences at the request of either Party.
The requestor shall provide at least 14 days notice of such a news conference.
The Federal Ministers and Territorial Ministers, or a designated representative
of either Party, will participate in such news conferences to take place at a
mutually agreed date and location. Public Announcements, Official Events
or Ceremonies
C.3.4 An official ceremony shall be held when this
Agreement is signed. No public announcement of a Project under this Agreement
shall be made by either Party or an Applicant without the prior consent of the
Management Committee. C.3.5 Canada shall receive at least 14 days
notice of any proposed public announcement or official ceremony related to a
Project approved under this Agreement. The Federal Ministers, or a designated
representative of the Federal Ministers, shall participate in such
announcements or ceremonies, to take place at a mutually agreed date and
location. C.3.6 The Parties shall cooperate in the
organization of announcements or ceremonies.
The Table of Precedence for Canada or other mutually agreed protocol should be
followed. Messages and public
statements for such events should be mutually agreed upon. The Management
Committee following the advice of the Communications Sub-committee may
recommend special events and ceremonies be held where and when appropriate. Signage
C.3.7 The Management Committee shall ensure that
the Applicant provides and installs temporary signage at a prominent location
where there is visible activity related to an approved Project, indicating that
the Project is an Infrastructure Canada – Nunavut Project, and bearing any
other such message approved by the Management Committee. C.3.9 The Management Committee shall issue
specifications for signs and timeframes for their installation. Temporary signs must be removed within 90
days of Project completion. C.3.10 Canada and Nunavut may provide and
install, upon completion of Projects, where feasible, a plaque or permanent
sign bearing an appropriate inscription. The design, wording and specifications
of such permanent signs shall be in accordance with subsections C.1.4 and C.3.8
and must be approved by the Management Committee. Advertising
C.3.11 Either Party may organise an advertising or
public information campaign related to the Infrastructure program, however, it
shall inform the other Party at least 30 days before it is launched of the
contents of the messages. C.4 Cost
sharing
C.4.1 Unless otherwise agreed by the
Management Committee, Canada and Nunavut will each assume half the costs
associated with the development and delivery of communications products and
activities. This would apply to literature, letterheads, media distribution,
organisation of joint special events, translation and other material, as
established by both parties. C.4.2 Costs associated with any public
announcement and official ceremony incurred by the Applicant shall be Eligible
Costs. Other costs incurred by the
Parties to organise such events would be borne by the Parties using an
equitable cost‑sharing formula. C.4.3 Costs associated with any temporary or
permanent signage incurred by the Applicant shall be Eligible Costs. If such costs are incurred by the Parties
they would be borne by the Parties using an equitable cost-sharing formula.
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